According to Wikipedia,
“The Business Mileage Reimbursement Rate is an optional standard mileage rate used in the United States for purposes of computing the allowable business deduction for federal income tax purposes under the IRS Code for the business use of a vehicle. Under the law, the taxpayer for each year is generally entitled to deduct either the actual expense amount or an amount computed using the standard mileage rate, whichever is greater.
The Business Mileage Reimbursement Rate is also used by some employers for computing employee reimbursement amounts when an employee operates an employee-owned automobile for the employer’s business purposes.”
Effective January 1, 2011, mileage rates will be:
- 51¢ for each business mile driven.
- 19¢ for each mile driven for moving or medical purposes.
- 14¢ for each mile driven to serve a charitable organization.
The business standard mileage rate may not be used for:
- Vehicles used for hire.
- Vehicles that claim a section 179 deduction.
- More than four vehicles at the same time.
- Vehicles that use depreciation as part of the Modified Accelerate Cost Recover System (MACRS).
Additional information on mileage rates is available at the IRS website.
photo courtesy: Aub Rey